BEIJING – U.S. automaker Tesla sold 62,167 Chinese-made electric vehicles in April, down 18% from a year earlier, lagging the broader market’s rise, data from the China Passenger Car Association (CPCA) showed on Tuesday.
Tesla shares fell 3.8% on Tuesday amid concerns about slowing demand for Tesla electric vehicles and an intensifying price war, particularly against Chinese rivals. Tesla’s China-made cars, which accounted for more than half of the automaker’s global shipments last year, are also exported to various markets, including Europe, and the CPCA has not provided a breakdown of Tesla exports by destination. Tuesday’s numbers are a preview of the full April data due to be released later this week.
Deliveries of China-made Model 3 and Model Y vehicles fell 30.2% compared to March. The sharp decline contrasts with rising electric vehicle sales in the world’s largest auto market, albeit at the slowest pace in a year in the first quarter.
China’s sales of new energy vehicles, including battery electric vehicles and plug-in hybrids, were estimated to reach 800,000 units in April, up 33% year-on-year and down 2% month-on-month, according to CPCA data.
Tesla’s main Chinese competitor BYD, with its electric vehicles and plug-in hybrids Dynasty and Ocean, sold 312,048 passenger vehicles in April, up 48.97% year-on-year and 3.5% more than in March.
Tesla, led by its billionaire CEO Elon Musk, posted a decline in global vehicle deliveries in the first quarter for the first time in nearly four years.
Tesla’s sales of Chinese-made vehicles fell 4% in the January-March period compared to a year earlier.
At the start of the second quarter, the company announced layoffs of more than 10% of its global workforce and cut vehicle prices in key markets such as the United States, China and Europe.
In late April, Musk visited China and made progress in rolling out Tesla’s advanced driver assistance package in China, which could help the company better compete with local competition.
Grünheide remains inactive amid the protests
Tesla will close production at its German factory in Grünheide for four days amid protests against its expansion plans, German newspaper Handelsblatt reported on Tuesday.
The electric car manufacturer is sending all employees to work from home on Friday, according to an email available to Handelsblatt that was sent to employees on Monday.
Thursday is a public holiday in Germany.
Production will end on Wednesday with the late shift and begin again on Sunday with the night shift, Handelsblatt said. Access to the factory is only possible with the approval of the supervisor.
Tesla could not immediately be reached for comment.
Tesla’s ambitions to expand its German factory hit a roadblock in February when citizens voted against a proposal to clear trees and make room for the larger site.
Activists have announced several protests against Tesla’s expansion next week, including a rally outside the factory gates on Friday.